China's Shandong Tyan says talks over on bid for Barrick's Kalgoorlie

Wed Apr 19, 2017 12:00pm EDT
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By Susan Taylor

TORONTO (Reuters) - Shanghai-listed Shandong Tyan Home 600807.SS said on Wednesday its negotiations with Barrick Gold Corp (ABX.TO: Quote) to buy the Canadian operator's 50-percent stake in Kalgoorlie mine have ended without a deal, citing new capital and acquisition rules in China.

Toronto-based Barrick had been reviewing the financial backing behind an approximate $1.3 billion bid for its stake in Kalgoorlie mine by Minjar Gold, a unit of Shandong Tyan, Reuters reported in November.

Barrick, the world's largest gold producer, declined to comment on the matter. It reports first-quarter financial results on April 24.

In February, Barrick President Kelvin Dushnisky said "advanced negotiations with a proposed buyer," were under way and Barrick would be "happy sellers" at the right price. "We're also very happy to continue to own that asset," he said.

Shandong Tyan said it had been in contact with Barrick about buying a stake in the mine, but did not reach any formal investment agreement. "We did not continue the negotiation," it said in a filing to the Shanghai Stock Exchange on Wednesday, due to China's capital outflow curbs and greater scrutiny of overseas acquisitions.

Shandong had trumped offers by Australian, Chinese and Canadian companies for the asset, sources had told Reuters.

Newmont Mining (NEM.N: Quote), Barrick's joint venture partner at Kalgoorlie and mine operator, has said it was interested in buying the remaining stake, but price has been a sticking a point.

"We would be open to discussing a possible transaction with Barrick on (Kalgoorlie) if they are interested in doing so," said Newmont spokesman Omar Jabara.   Continued...